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Topic: ISLAMIC INVESTMENT Answer all the following questions: 1 . assume Fatimah, a retail investor, purchases a stock on February 26 th 2020, for RM25,000.

Topic: ISLAMIC INVESTMENT

Answer all the following questions:

1. assume Fatimah, a retail investor, purchases a stock on February 26th 2020, for RM25,000. At the end of the year, on December 31, Fatimah sells the stock for RM40,000. During the course of the year, Fatimah received RM1,500 in dividends. At the beginning of the year, the Consumer Price Index (CPI)* was at 700. On December 31, the CPI was at a level of 721.

  1. What is holding period return (HPR)?
  2. Calculate Inflation-adjusted return?

Note that the consumer price index (CPI) is a measure taken from examining the average of prices from a hypothetical basket of goods and services purchased by consumers

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